I like what I see
- Will allocate Short on a confirmed break of the blue Trendline.
- Volume profile on the Daily suggests price could retrace to +- 12.7-12.57 area.
- for the time-being, Fixed Income flows are favourable.
- I think the BRICs summit should provide some positive sentiment for USDZAR, who knows, maybe some deals...?
Counter arguments:
- worried that USDTRY will drag EM complex with it
- EM vs `DM carry - will look to yen as a litmus for this theme.
- factoring in the above point, we could see a Dollar shortage continue (EM fx will then weaken)
- Will allocate Short on a confirmed break of the blue Trendline.
- Volume profile on the Daily suggests price could retrace to +- 12.7-12.57 area.
- for the time-being, Fixed Income flows are favourable.
- I think the BRICs summit should provide some positive sentiment for USDZAR, who knows, maybe some deals...?
Counter arguments:
- worried that USDTRY will drag EM complex with it
- EM vs `DM carry - will look to yen as a litmus for this theme.
- factoring in the above point, we could see a Dollar shortage continue (EM fx will then weaken)
